The Janesky Company has collected data on the manufacture of 6,500 robot grippers last month. The breakdown of total costs is shown below. They now need to plan for future months.
Units sold last month.........................................6,500
Direct materials............................................$150,000
Direct labor..................................................$300,000
Manufacturing variable overhead................$280,000
Selling and administrative costs..................$150,000
a. What was the total cost per unit?
b. What was the variable cost per unit?
c. Janesky is forecasting that, 7,000 units will be produced and sold without any increase in fixed costs in the coming month. What would be the total cost based on last month